RFI VS RFP — Everything You Should Know
This article will discuss what RFI and RFP are. We will also differentiate them from one another and tell you their advantages and disadvantages when using one of them.
Once you are finished reading this article, you will have an in-depth understanding of both RFI and RFP. Thus, this article will allow you to clear the confusion regarding their use. Additionally, you will also know which of them is more appropriate to use in some situations in your business.
For you to fully grasp their difference, we will discuss their definition first. A Request for information (RFI) is a method of gathering information from multiple suppliers before the procurement manager starts to source products or services.
The RFI is often applied once you have gathered multiple suppliers but you do not have any information about them. The procurement manager will collect information about the suppliers to find which among them suits the company better to be their supplier.
Therefore, the RFI will be sent to the potential suppliers. Once the data has been collated, the procurement manager will assess and start discussing with the suppliers. After this, the procurement manager will finally select among the potential suppliers.
The Meaning of RFP
A request for proposal (RFP) is a document that contains the description of the project and solicits bids from potential contractors to complete it. This document defines the project, goals, and the organization that sponsors it and outlines the bidding process and contract terms.
Also, the RFP is sometimes called a request for procurement as the proposal is about procuring the right materials for a project. It is the procurement phase where the procurement manager puts the details of the project or task to acquire the important materials or services.
RFP is commonly used for head-starting procurement projects and is usually used by governments. Thus, they are familiar with these kinds of requests for procurement. It is the job of the procurement manager to assess the bids, the background of the company that wants to bid for the project, and know if the potential companies that bid can undertake the project.
Difference Between RFI and RFP
Now that we know both of their meanings, let us now differentiate them for you to be able to erase the confusion regarding RFI and RFP.
Advantages and Disadvantages of RFI
Advantages and Disadvantages of RFP
+ What is RFI?
It is a document that is used to gather information from multiple suppliers before the procurement manager starts to source products or services.
+ What is RFP?
It is a document that contains the description of the project and solicits bids from potential contractors to complete it.
+ What is the main difference between RFI and RFP?
RFI is usually used when companies want to get information about their potential suppliers. On the other hand, RFP is used when companies want to ask for solutions to business requirements.
Negotiation Course For Procurement Professionals
You'll get a certificate after completing the course
Rated 9.2/10 ★★★★★